Is Coca-Cola going back to its roots?&nbsp;After US President Donald Trump's cane sugar use ultimatum, the world’s biggest soft drink maker has announced plans to launch a new Coke product. The company revealed that the new Coke product will be&nbsp;made with real cane sugar in the United States, responding to a growing consumer demand for “natural” ingredients and riding a wave of pricing-driven profits.&nbsp;The announcement came as Coca-Cola beat Wall Street expectations for its second-quarter earnings, with higher prices offsetting weaker volumes, especially in key markets like India, Mexico, and the United States. The company reported earnings of 87 cents per share, topping analysts’ estimates of 83 cents, and comparable revenue of $12.62 billion, slightly above the $12.54 billion forecast, as per data compiled by LSEG.<h2>Real sugar, real politics</h2>The shift toward cane sugar comes amid mounting health scrutiny in the United States. Food brands are under pressure from Health Secretary Robert F. Kennedy Jr.’s ‘Make America Healthy Again’ campaign, which advocates cleaner, less processed food and drink options. Even US President Donald Trump weighed in last week, stating that Coca-Cola had agreed to use real cane sugar in American products, something the company already does in countries like Mexico, where “Mexican Coke” with cane sugar is popular and sold in glass bottles.&nbsp;CEO James Quincey confirmed the news in a post-earnings call, saying the new product would “complement” the current lineup, not replace it. “We want to use the whole toolkit available of sweetening options,” he said. But the move isn’t without cost. Industry analysts told Reuters that switching to cane sugar would increase production expenses and require major supply chain adjustments. At a time when aluminium tariffs under Trump have already doubled to 50 per cent, Coca-Cola has been experimenting with affordable packaging like plastic bottles to ease cost pressures.<h2>High prices, falling volumes</h2>Coca-Cola is facing a dip in consumer demand. Volumes declined 1 per cent in the quarter, after rising steadily in the previous two quarters, despite posting strong financials.&nbsp; Weaker demand in Mexico, India, and among US consumers drove the drop, especially in lower-income groups feeling the pinch of inflation.&nbsp;Quincey acknowledged the challenges, noting that “continued uncertainty and pressure on some socioeconomic segments” affected purchasing patterns. This comes after a boycott-related slump earlier this year in North America and Mexico, following a viral video falsely claiming the company had reported Latino employees to immigration authorities. Though Reuters found no public evidence of such reporting, the impact on sales was real. The company said the backlash is now “largely resolved.”&nbsp;Still, price increases of 6 per cent helped offset the volume dip, especially in inflation-sensitive markets. The winners: Coke Zero Sugar and international sales. Amid the shifting dynamics, one product emerged as a clear winner, Coca-Cola Zero Sugar, which saw a 14 per cent jump in volumes globally, driven by health-conscious consumers across regions. Interestingly, about 61 per cent of Coca-Cola’s revenue comes from international markets, which proved more resilient than the US. A weaker dollar also helped the company stay on track to meet the top end of its 2 to 3 per cent annual earnings growth target.<h2>The bottom line</h2>While the buzz around cane sugar Coke made headlines, analysts say the real story lies in Coca-Cola’s pricing power. “Growth was due more to increased price changes and not volumes sold,” said Jay Woods, Chief Global Strategist at Freedom Capital Markets, speaking to Reuters.&nbsp;In midday trading on Tuesday, Coca-Cola’s shares were down slightly, by 1 per cent at $69.29. But with shifting consumer habits, political nudges, and global market pressures, one thing is clear: even the world’s most iconic soda brand can’t afford to stand still.&nbsp;(With inputs from the agencies)&nbsp;

This shift comes amid health concerns and pressure from campaigns advocating for cleaner food options. Despite strong earnings, volumes declined by 1% due to inflation impacts on lower income consumers. CEO James Quincey mentioned the initiative wouldn't replace existing products. 

Is Coca-Cola going back to its roots? After US President Donald Trump's cane sugar use ultimatum, the world’s biggest soft drink maker has announced plans to launch a new Coke product. The company revealed that the new Coke product will be made with real cane sugar in the United States, responding to a growing consumer demand for “natural” ingredients and riding a wave of pricing-driven profits. The announcement came as Coca-Cola beat Wall Street expectations for its second-quarter earnings, with higher prices offsetting weaker volumes, especially in key markets like India, Mexico, and the United States. The company reported earnings of 87 cents per share, topping analysts’ estimates of 83 cents, and comparable revenue of $12.62 billion, slightly above the $12.54 billion forecast, as per data compiled by LSEG. Real sugar, real politics The shift toward cane sugar comes amid mounting health scrutiny in the United States. Food brands are under pressure from Health Secretary Robert F. Kennedy Jr.’s ‘Make America Healthy Again’ campaign, which advocates cleaner, less processed food and drink options. Even US President Donald Trump weighed in last week, stating that Coca-Cola had agreed to use real cane sugar in American products, something the company already does in countries like Mexico, where “Mexican Coke” with cane sugar is popular and sold in glass bottles. CEO James Quincey confirmed the news in a post-earnings call, saying the new product would “complement” the current lineup, not replace it. “We want to use the whole toolkit available of sweetening options,” he said. But the move isn’t without cost. Industry analysts told Reuters that switching to cane sugar would increase production expenses and require major supply chain adjustments. At a time when aluminium tariffs under Trump have already doubled to 50 per cent, Coca-Cola has been experimenting with affordable packaging like plastic bottles to ease cost pressures. High prices, falling volumes Coca-Cola is facing a dip in consumer demand. Volumes declined 1 per cent in the quarter, after rising steadily in the previous two quarters, despite posting strong financials. Weaker demand in Mexico, India, and among US consumers drove the drop, especially in lower-income groups feeling the pinch of inflation. Quincey acknowledged the challenges, noting that “continued uncertainty and pressure on some socioeconomic segments” affected purchasing patterns. This comes after a boycott-related slump earlier this year in North America and Mexico, following a viral video falsely claiming the company had reported Latino employees to immigration authorities. Though Reuters found no public evidence of such reporting, the impact on sales was real. The company said the backlash is now “largely resolved.” Still, price increases of 6 per cent helped offset the volume dip, especially in inflation-sensitive markets. The winners: Coke Zero Sugar and international sales. Amid the shifting dynamics, one product emerged as a clear winner, Coca-Cola Zero Sugar, which saw a 14 per cent jump in volumes globally, driven by health-conscious consumers across regions. Interestingly, about 61 per cent of Coca-Cola’s revenue comes from international markets, which proved more resilient than the US. A weaker dollar also helped the company stay on track to meet the top end of its 2 to 3 per cent annual earnings growth target. The bottom line While the buzz around cane sugar Coke made headlines, analysts say the real story lies in Coca-Cola’s pricing power. “Growth was due more to increased price changes and not volumes sold,” said Jay Woods, Chief Global Strategist at Freedom Capital Markets, speaking to Reuters. In midday trading on Tuesday, Coca-Cola’s shares were down slightly, by 1 per cent at $69.29. But with shifting consumer habits, political nudges, and global market pressures, one thing is clear: even the world’s most iconic soda brand can’t afford to stand still. (With inputs from the agencies)

Coca-Cola plans to launch a new product made with real cane sugar in the US, responding to consumer demand for natural ingredients and offsetting weaker sales in key markets.

Coca-Cola to launch cane sugar Coke in US as higher prices boost profit

us-coca-cola

Us Coca Cola, News on Us Coca Cola, stories on Us Coca Cola, articles on Us Coca Cola, Us Coca Cola stories at Wion, Us Coca Cola news, Us Coca Cola latest news

us coca-cola

Coca-Cola to launch cane sugar Coke in US as higher prices boost profit